Target, Walmart lower prices this year with competing Thanksgiving meal deals

Earlier this month, Walmart boasted its “inflation-free” turkey and sides will be less expensive than last year, with turkeys starting at 88 cents a pound and dinner costing less than $7 per person.

On Monday, Target trotted out a similar deal, with a $20 Thanksgiving four-person meal special down $5 from last year and turkeys priced at 79 cents a pound — 20% lower than last year.

Both retailers are ensuring grocery prices remain a key topic well after next week’s election to drive sales and build or retain a reputation for value.

“In this environment, the constant drumbeat is the customer looking for value,” said Edward Jones analyst Brian Yarbrough. “They’re driving traffic by telling consumers, ‘We know.’”

Target and Walmart are squaring off in a price war that has seen prices cut on thousands of items this year as supply chains settle, production costs level off and suppliers grow more willing to offer deals to boost volumes.

Turkey prices have also fallen dramatically from last year, partly a result of flocks recovering from the bird flu epidemic and lower consumer demand after years of higher prices.

Even as many shoppers are still buying Halloween candy, Target and Walmart are setting the table early.

“They’re being very aggressive for the holidays and driving consumer awareness around value,” Yarbrough said. “Both of these companies can take a near-term hit on grocery profits to bring more consumers into their stores.”

Grocery stores are also launching their Thanksgiving strategies. Aldi released an “inflation-busting holiday meal” that feeds 10 for $47.

Local grocers like Lunds & Byerlys, Kowalski’s and Cub offer pre-cooked meals, which set them apart from discount retailers.

HyVee’s fully prepared Thanksgiving meals start at $39.99, and the retailer will launch on Friday its annual buy-a-ham, get-a-free-turkey deal.